The Federal Reserve (Fed, the US central bank) of New York said in a statement that it will publish monthly, starting this Wednesday (29), an index to assess conditions in the corporate bond market for primary and secondary markets. .
According to the Central Bank of the United States, the index is the first of its kind and uses weekly metrics to build an aggregate measure of this scenario.
The NY Fed’s focus is on identifying periods of widespread stress in the US corporate bond market.
Known by the acronym CMDI, the index must be published on the last Wednesday of each month.
The NY Fed argues that there are several measures that record aspects of how the corporate bond market works, but little consensus on how to use them to identify periods of widespread market stress and how to weigh different measures.
The now-released index seeks to identify periods of stress from a range of individual measures of market functioning that could indicate worsening conditions in the primary and secondary markets for corporate bonds, the statement reads.
Source: CNN Brasil
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